WASHINGTON -- The Federal Housing Finance Board recently approved a new initiative by the Federal Home Loan Bank of Atlanta to aid financial institutions in smaller communities.
"Meeting the housing finance and community development needs of member institutions is the basic mission of the Federal Home Loan Bank System," FHFB Board Member Geoff Bacino, a former NCUA Board member, commented. "I applaud the Atlanta bank for developing this new initiative which will help finance additional home ownership investments in their local communities."
He emphasized that the program does not create another housing government-sponsored enterprise. "The loans that are purchased through this program will not be placed on the balance sheet of the Atlanta Bank," Bacino said. "The new program simply combines existing private sector secondary market capabilities into an integrated program to better serve the mortgage needs of community financial institutions that are members of this Federal Home Loan Bank."
Under the initiative, the FHLBank of Atlanta will receive fee income for linking community financial institutions with private investors who intend to securitize the mortgages.